SEC Drops OpenSea Investigation Easing Pressure on NFT Market

The U.S. Securities and Exchange Commission (SEC) is closing its investigation into major non-fungible token marketplace OpenSea, the platform’s founder and CEO Devin Finzer said on social media.

The regulator issued a Wells notice against OpenSea in August 2024, indicating it was planning on pursuing an enforcement action against it. The regulator alleged the platform may have been operating as an unregistered securities marketplace.

The SEC’s move comes as the regulator is slated to vote on a deal negotiated with Coinbase to drop its lawsuit against the exchange, which is seen as a boon for the cryptocurrency industry and NFT creators.

“This is a win for everyone who is creating and building in our space. Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation,” Finzer posted.

Reacting to Finzer’s post, Chris Akhavan, chief business officer of NFT marketplace Magic Eden, suggested it was a victory for the wider cryptocurrency space. “While we are competitors in the trenches, we share a deep belief in NFTs and what they will enable,” Akhavan wrote.

The announcement led to an uptick in activity for the native token of NFT marketplace LooksRare. The token, LOOKS, saw a surge in active addresses shortly after the announcement that represents an “approximately fivefold increase compared to the usual figures,” according to data from TheTie.